While this figure puts the country fourth in Europe, behind Germany (4th overall), Italy (7th) and France (8th), it marks the third consecutive year of growth from the low of 11th in 2012. Almost a quarter of Britain’s factory output is destined for export overseas, with our largest markets being the USA, Germany, France and Ireland. Total annual output from the UK is over £190bn.
This demand from overseas has led to a growth in productivity, the figures suggest. In the past decade, manufacturing productivity as measured by output per hour has grown around three times faster than the whole UK economy. Employers are creating jobs in manufacturing at a faster rate of traditional manufacturing powerhouses such as Japan and Germany – the UK now employs 2.7 million people in manufacturing. And those new employees are paid better than most as well. Mean annual pay in manufacturing is almost £31,500, compared to a nationwide, all-sector average of £27,607. Since 2013, the industry has seen a 3% growth in earnings, compared to just 1.6% in the wider economy.
Every region of the UK contributes to the manufacturing industry. In the North-West, nearly 350,000 people are employed in the market, with manufacturing contributing £23.7bn to the economy – 15.8% of the output of the region as a whole. The West and East Midlands are also strong – contributing £16.4bn each to the economy.
Commenting, Lee Hopley, chief economist at EEF (pictured), said: “Given the importance of manufacturing to the economy, it’s vital that we educate all stakeholders about its real value and contribution to growth. Our latest fact card once again lifts the lid on the UK’s most productive sector, showing manufacturing is innovative, everywhere across the country and the home of well-paid skilled jobs.”
“It’s great news that the UK has re-entered the top ten manufacturing nations,” added Charles Garfit, head of manufacturing at Santander Corporate & Commercial, who sponsored the report. “However, to build momentum on this renewed optimism manufacturing businesses in the UK must look beyond our own borders to extend their growth potential.”
To see the full fact card, click here.
